Thousands face losing their homes after Government u-turn on social care costs

Homeowners with more than £23,250 in other assets may not be able to defer their care costs

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Proposals that would stop homeowners with more than £23,250 in other assets from deferring care costs have been defended by the Care Minister.

Norman Lamb said it was right to consider making people with a “vast amount of money in the bank” to pay immediately.

The Liberal Democrat insisted no decision had yet been made on plans to introduce the cash and shares cap as part of reforms allowing care bills to be repaid from the estate at a later date but said the changes must be affordable.

It follows claims the Government has “welshed” on a deal to save more people having to sell up to pay for care.

Mr Lamb insisted it was “clear that you would not be forced to sell your home”.

He told BBC Radio 4’s Today programme: “The issue that emerged in the House of Lords last night relates to a consultation that’s going on. No decisions have been taken on this.

“The issue is whether if someone as well as their home has substantial other assets, money in the bank, shares or whatever, should they be expected to use those assets to pay for care or should we just say we will always defer the costs of selling the home?

“The view that’s expressed in the consultation for discussion and to get views from the public is that if you’ve got a vast amount of money in the bank, you’re quite wealthy, then it’s desirable that we could protect that money but the scheme has to be affordable.

“If together with owning your own home you have more than £23,000 of assets in the bank or in shares or whatever, if you have more than that, then the question is should you be expected to use that money?

“We are talking about here people with quite significant means.”

Labour’s Lord Lipsey claimed the Government had imposed huge restrictions on the scheme by the “back door” during a debate on wide-ranging reform of the care system under the Care Bill.

Under a deferred payment agreement, the care charges are repaid from the estate at a later date, helping people to delay the need to sell their home or possessions.

But Lord Lipsey, a former member of the Royal Commission on long-term care of the elderly, said the Bill did not provide a “universal” deferred payments scheme – only one for people with less than £23,250 in assets.

“This has been done in a back-door manner which disgraces the Government,” he said. “The Government has welshed on the deal.”

He said in theory people could let their assets run down but in general people wanted to make decisions on how their care would be funded when they first went into care.